Zurich completes separation of its reinsurance business
Zurich Financial Services reported on Wednesday that it had completed the spin-off of its reinsurance arm, Converium.
A statement said that under the supplementary option relating to the initial public offering of the company, an additional 12.5 per cent of Converium shares had been sold, bringing the total stake disposed of by Zurich to 100 per cent.
At the issue price of SFr82 ($49.49), Converium (formerly Zurich Re) has a market capitalisation of SFr3.28 billion, entitling it to blue-chip status and inclusion in the benchmark Swiss Market Index.
The issue was the second largest on the Swiss share market last year after a SFr6 billion capital increase by the Swiss Reinsurance Company, the world’s number two reinsurer.
“We are happy to see that Converium’s IPO has generated a great deal of interest and would like to wish Converium all the best for the future,” commented Zurich chairman and CEO Rolf Hüppi.
Core activities
Zurich commented in December after the completion of the offer of 87.5 per cent of shares that the transaction was a further step towards carrying out its strategy to focus on its core activities.
A statement said the spin-off would allow the group to re-deploy its capital to other areas of growth.
Pre-tax capital gains after expenses are expected to be more than $200 million.
Converium started business last October and with a staff of 800 people around the world is the eighth largest player on the reinsurance market.
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